Sep. 14, 2017
HARRISBURG – State Rep. Barry Jozwiak (R-Berks) Wednesday night in the state Capitol voted for a bill approved by the House that would balance the current state budget and plug a deficit from the previous state budget without borrowing money or raising state taxes.
“We took some innovative steps to balance the budget without further burdening taxpayers,” Jozwiak said.
The Commonwealth developed a $1.5 billion deficit in the 2016-17 state budget that ended June 30. It also is projecting a deficit of approximately $600 million for the current budget year that began July 1.
The largest part of the House plan to fill that approximately $2.1 billion hole is a proposal that would bring in a one-time, $1 billion payment to the state and, in exchange, the purchaser would receive a portion of the Tobacco Settlement Funds received by the Commonwealth for up to 10 years.
“We’re looking to use existing financial resources in different ways to meet the Commonwealth’s budgetary needs,” Jozwiak said.
The House plan also would reallocate $630 million in existing state revenues that were previously allotted for various projects and programs, but have not been spent.
“There is money sitting in various state government accounts that we could use to help balance the budget,” Jozwiak said. “These were excess revenues that have been sitting in these accounts for several years without being used. We took steps to ensure moving the money will not affect the state’s ability to provide essential government services.”
The plan also projects $225 million in additional revenues will be available through proposed reforms to Pennsylvania’s gaming law and $50 million will be available if the Senate and governor work with the House to further reform Pennsylvania’s liquor sales system.
The House revenue package also includes several hundreds of millions of dollars more in intergovernmental transfers.
“Our plan includes no tax increases and is an alternative to the revenue proposals offered by the governor and some other legislators,” Jozwiak said.
The House revenue package –
House Bill 453 – now heads to the state Senate for consideration.
Representative Barry Jozwiak
5th Legislative District
Pennsylvania House of Representatives
Media Contact: Dan Massing
717.772.9845
dmassing@pahousegop.com
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